Assigned to Pearl Harbor, Navajo operated in the Hawaiian Islands throughout her Naval career, performing towing and docking operations. On 17 July 1920 she was reclassified as AT-52.
In 1922, Water Barge #10, while in tow by Navajo, collided with the submarine . With a hole in her bow, the barge sank within minutes. The gallant action of men from Navajo resulted in rescue of the barge's three-man crew. After decommissioning, Navajo was struck from the Navy List on 24 April 1937.
Navajo was restored to the list as IX–56 on 14 January 1942, and she served in a decommissioned status at the Navy Yard at Pearl Harbor. She was placed in service on 15 March 1942 and continued operations in the 14th Naval District throughout World War II. After war-time service she was struck from the Navy List on 9 February 1946. She was subsequently sold for scrap to Commercial Equipment Co. on 23 November 1948.